PUBLIC EXPOSE

PT BANK KB BUKOPIN Tbk

Jakarta, 17 December 2021

KB Kookmin Ownership Became 67%

Interbank liquidity support Time deposit placement

IDR8.5 TRILLION IDR2.8 TRILLION

Capital injection Money Market Line backed by

standby LC
LPO IV LPO V Private
(July 2018) Placement
IDR12.4 TRILLION IDR2 TRILLION (Jul 2020)
22% (Sep 2020)
33.9%
67%

Financial Ratio S ep-20 Dec-20 Mar-21 J un-21 S ep-21 Changes

L DR 121.66% 135.46% 128.79% 123.42% 101.52% -20.14% Lower better
BOPO 129.36% 168.10% 117.30% 93.00% 110.17% -19.19% Lower better
ROA -2.09% -4.61% -1.12% 0.52% -0.78% 1.31% Higher better
ROE -21.77% -48.67% -12.77% 5.59% -9.40% 12.37% Higher better
NIM 0.58% 0.61% 0.94% 1.17% 0.91% 0.33% Higher better
KB Bukopin Journey 2021

February 8th, 2021 February 23rd, 2021 June 17th, 2021

Regulators (BI and OJK) Publication of changes in the name The Company held Annual
approved the application for & logo of KB Bukopin to The General Meeting of Shareholders.
changes in the name & logo of Company Website, IDX Website and Shareholders also give the
KB Bukopin newspapers. approval for LPO VI
implementation plan and
appointed Chang Su Choi as new
CEO.

August 31st, 2021

November 8th, 2021 September 2021 OJK issued an effective statement
letter for Bond Issuance to The
The company issued bonds. IDR company.
OJK issued an effective statement 1 Trillion on Subordinated Bond
letter for LPO VI implementation to and IDR 1 Trillion on Senior
The company. Bond.

November
November19
19 , 2021
thth
,2 December 1st, 2021
The Company held EGMS The Company completed the LPO
VI, all Rights are exercised
Financial Outlook
Focus transformation on top priority agenda, recovery of liquidity-drought &
prepare for long-term credit risk mitigation

K ey Indicators Q3 2020 Q4 2020 Q3 2021 Ytd YoY ❑ Regain reputation and win back
customer trust
As s ets 76,638 76,759 85,674 11.61% 11.79%
❑ Significantly increase in customer
L oans 59,002 56,872 53,986 -5.07% -8.50%
deposit followed by a decrease in
Funding 48,497 41,984 53,177 26.66% 9.65% the cost of funds
•Current 10,238 6,821 3,236 -52.56% -68.39% ❑ Normalize liquidity and Loan to
•S aving 11,431 6,710 6,297 -6.16% -44.91% Deposit Ratio
•Time Deposit 26,828 28,453 43,644 53.39% 62.68% ❑ Improve credit risk coverage and
E quity 10,207 8,373 7,981 -4.69% -21.81% provision
Fee-B as ed 531 688 332 -51.74% -37.48% ❑ Cleansing Bad loan
Gros s Income (1,362) (3,893) (462) -88.13% -66.09% ❑ Business and operational process
improvement
Net Income (1,062) (3,226) (378) -88.28% -64.41%
❑ Improvements in various aspects
compared to the position in
December 2020
CAR NPL net LDR NIM
12.14% 4.94% 101.52% 0.91%
New Shareholder
With Better Rating
IDR7,823,002,665,200 KB Bukopin Ownership
IDR7,042,857,796,800
Shareholder Shares %
39.115.013.326
35.214.288.984 KB Kookmin Bank Co.,Ltd 45,484,861,813 67.00%
PT Perusahaan Pengelola Aset (Persero) 678,875,412 1.00%
Public 21,723,802,953 32.00%

Issued Shares Subscribed Foreign Company

18,74%
98.30% 100.00%
After LPO VI Domestic Individual
72,04% Composition
7,25% Domestic Company

Others
24.05% 1,97%
17.59%
12.18%
6,90%

Day 1 Day 2 Day 3 Day 4 Day 5 Additional KB Financial Group (International Rating) KB Kookmin Bank (International Rating)
Subscribe Long Term A1 Long Term A1
Moody’s Short Term P-1 Moody’s Short Term P-1
Outlook Stable Outlook Stable
• 33,235 investors participated in LPO VI Long Term A Long Term A
S&P Short Term A-1 S&P Short Term A-1
Outlook Stable Outlook Stable

KB Bukopin (National Rating) Long Term A

• Oversubscribe up to 3,900,724,342 shares,
Fitch Rating Short Term F1
IDR780,144,868,400 refunded Fitch Rating idAAA (outlook stable)
Pefindo Outlook Negative
idAAA (outlook stable)
Transformation Journey
Next Phase:
Phase I & II: Phase III & IV:
Build the Foundation Strengthen Capabilities
Jul 20 Fix the Main Problems (May-Dec ‘21) (2022-2023)
KB approved (Aug’20-Apr ‘21)
as controller
• Liquidity obtained from KB HO • New CEO appointed • Digital banking strategy execution
• Pending deposits were settled • New business directors joined • Channel optimization execution
• Good Bank was formed with focus on • Customer-oriented based organization
liquidity improvement and boosting
• Product and Service revamp and
implemented based on Head Office creation
sales performance direction
• Major wholesale deposit obtained with • Retail And SME Sales Stimulation
• Digital banking strategy and roadmap rollout
Korean Link with Strategy Office
defined
Business pipeline to replace lost deposit from
• Channel optimization plan defined
• Strategic Partnership with Korean
SOE companies expansion
Drivers • Transformation strategy set • Pre-emptive delinquency
• Bad Bank group was formed to handle • Retail and SME Sales Stimulation
management enhancement
bad loan implemented and enhanced
• Strategic Partnership with Korean
• Bad loan and foreclosed asset
• Special Asset Management (SAM) –
companies expanded selling acceleration
design and setup
• Rebranding to KB Bukopin was • Bad loan and foreclosed asset selling • Data Analytics capability building
approved by OJK initiated

▪ New Culture forming –

• Organization and governance ▪ Credit Regional Center (CRC) – establish
performance-based, risk,
was designed 6 CRCs across Indonesia
compliance and credit culture

Process, ▪ Technology Quickwins – 28 quickwins ▪ Technology Infrastructure and

• Credit Regional Center (CRC)
People & – develop design and tools
identified and implemented Core Systems – Next Generation
▪ IT Masterplan formulated Banking System implementation
Technology
Drivers
KB Bukopin’s Strategic Direction
Mid-to-long term Growth Strategy
Phase 1 (2021)
Implementation Focus on top priority initiatives
direction
including cost structure improvement
and CASA deposit sourcing, etc.
• Return to growth primarily around healthier assets
(Pension, Mortgage etc.)
Retail/ • Newly setup SME dedicated sales organization;
SME credit scoring model and process
purchasing/contracting process improvement,
channel optimization, and manpower restructuring
Korean • Focus on deposit & loans for Korean companies;
• Also provide ancillary transactions including salary
Captive Market/
transfers etc.
Synergy
• Start approval process to provide ancillary
across affiliates
transactions for affiliates
• Prepare to collect bad loans
• Overhaul org / governance to take actions;
Bad Bank
• Build external partners for write-off
• Increase customer based on existing digital
Digital/ operating channel
IT infrastructure
• Identify 24 IT quick win initiatives
Phase 2 (2022~2023)
Achieving Turn Around through IT Infra /
Digital innovation while growing Good Bank
and drastic management improvement
• Convert to a more holistic and profit-driven Retail
& SME business (e.g., bundled products)
• Sales force expansion and capability
enhancement
• Build a long-term customer franchise (e.g., payroll
account)
• Securing wholesale customers as anchor
companies to build tailored supply chain / value
chain environment
• Start to provide cross selling leveraging customer
data from Securities, Card, P&C etc.
• Intensive delinquency management to prevent
soundness deterioration
• Accelerate the liquidation of bad assets
through strong action including legal activity
• Differentiated competitiveness by building super
applications
• Embark on development by stage based on IT
masterplan
Phase 3 (2024~2025)
Build scale and expand business
coverage based on
competitiveness
• Retail driven credit portfolio
• Start to offer full SME banking service (CMS
etc.) on digital channel
• Fully start supply chain finance to local e-
commerce leaders
• Build foundation for growth via mergers of
similar businesses (transfer of Cards business etc.)
• Shift to a leading risk management system
• Finish normalization, collection and sell-off of
existing bad debt
• Accelerate platform building based on
partnership
• Upgrade overall IT system including
• Accounting system, Information system and
Channel system
Strategic Agenda
To Become “ The First Choice of
Financial Institution” in Indonesia

Employee Principles
A ctivity First
R esponsibility
O ut of Old Thinking
Transfor Undercut Risk New U pper Goal Setting
mation Cost manage digital N ever Give Up
D esign New Mindset
Direction
Transfomation (Culture/ Risk- managed growth
Undercutting Costs & Reduce Bad Loan New digital & IT infra
Structure/ Product)
• Establishment of
• Make a new culture • Improvement of high • Qualitative growth based
advanced IT infra(NGBS)
• Manpower structure cost structure through on risk management,
• Building an independent
improvements channel optimization, • Active reduction of
& differentiated digital
• Innovative products etc. bad loans
channel
Strategic Agenda
Performance-oriented
Accelerating Retail/SME Growth
① Making New Establishment & Spread of ④ Loan Growth Engine
Credit Culture
Culture Plan Targeting Korea Linked & Public
Customer Oriented Enterprises

Accelerating Cost-efficiency Activities

Build a Sales-Oriented for sustainable profit structure
② Man power Organization ⑤ Under
Structure Shifting Strengthening Sales Force through cutting Cost Channel optimization & Create Brand
New Branch Model
Job Re-Design

Bank-wide prevention of NPL

③ “Wag the migration through active DPD
Innovative Product Launch ⑥ Risk Mgt. and management
Market" by Improving asset quality by hard
Expansion into IB based on Reduce Bad collection through SAM
Innovative through value chain & supply loan Promote normalization of
Product chain of anchor company restructuring loans to improve
profitability
Strategic Agenda
(Digital Banking)

Market Insight Initiative

❑ Large opportunity still-pushed by the Build differentiated digital & ecosystem partnership proposition
tailwind of Indonesian digital Finding key differentiating proposition to attract new customers and expand user boundary
consumers through strategic ecosystem partnership with large scale retailers and niche players

❑ Consumers is increasingly becoming Two-track plan through current application and new expansion
digital • Enhance digital banking by Wokee revitalization and expand digital assets

❑ Active digital banking users is now at Reimagine digital business enablers to be a bank 4.0*
78%(up from 57% in 2017) • Build modern tech capabilities aligned with NGBS masterplan
* Banking everywhere, but never at a bank “Digital Banking Specialist Brett King”

Digital Transformation Roadmap

⑦ Digital 1 Key
Year 1: Two-track plan and MVP digital build Year 2: Business scale-up
Build Concept sprint and go-to-market (GTM) & branding Quarterly future release build for retail, PaaS, & SME
Innovation differentiated
differentiating
proposition
strategy for retail
digital &
ecosystem 2 Strategic Dual approach for ecosystem partnership – primary partnership with large-scale retailers and secondary
partnership ecosystem partnership with niche ecosystem players
proposition partnership (e.g. township)

Two-track plan
3 Enhanced Retail two track plan until retail super app launch Launch of SME & PaaS play within 2 years
through Wokee digital assets
revitalization &
expand digital
assets
4 New ways of Phased transition to Bank-within-Bank model - Leverage external support while ramping up in-house talent
working during transition
Reimagine digital
5 Modern tech Set up digital first stack within KB Bukopin’s tech architecture
business enablers
capabilities
(aligned with NGBS
masterplan)
Improvement and
Upgrading KB Bukopin
Liquidity Normalization &
Korean-Link Significant
Contribution
• Granted a rating upgrade to
AAAidn from AAidn by Fitch
Rating
• IDR 11 Trilion of Deposit
Increase while continue
improve Cost of Fund (decrease
0.8%)
• 31 thousands new to bank
customer
• Significant Korean Link business
growth reaching IDR 10.5 tn of
deposit and IDR 263.8 bn of
new loan as a December 2021
• Increased of correspondent
banks confidence reflect from
more active treasury
transactions
Improve the credit process Total Download 265%
(yoy)
by establishing Credit 120%
Total Account
Regional Centre (yoy)
Total Active User 255%
(yoy)
• Improvement of credit process
through establish 6 (six) Credit Total Transaction 229%
(yoy)
Regional Center in Jakarta, Bandung,
Semarang, Surabaya, Makassar, & 94%
Total Transaction
Medan : (yoy)
✓ Initial stage of SME scoring
model implementation
• QRIS Payment
✓ Standardize loan analysis &
through Wokee
process
• More Intuitive Wokee
• New loan growth was quite good
UI for better
reaching IDR 2.8 trillion (as of Nov21)
experience
amidst sluggish economy condition
• Increase of PPOB &
• Asset quality Improvement through
Mini ATM Transaction
establishing SAM (Special Asset
• Initial stage of New
Management) with ~160 man-power
Generation Banking
✓ Bad Bank Collection,
System Development
Restructuring & Litigation
✓ Bulk Sales & AYDA Sales
NGBS – New Generation Banking System
Answering transformation needs, KB Bukopin has been composing IT Masterplan as the detailed plan for the implementation of Next Generation
Banking System (NGBS) which will be carried out starting in 2022 which will be transforming bank KB bukopin as top tier player in Indonesian’s
banking industry

IT Due Diligence & Bank KB Bukopin Vision

IT Strategy & Masterplan KB Bukopin NGBS Stabilization
Quick Win Renewal (BBVR) & Sprint

Phase I Phase II Phase III Phase IV Phase VI

▪ Perform IT Due ▪ Consulting to establish
Diligence the direction and
strategy for improving
the IT system of KB
Bukopin Bank to
complete the master plan
▪ Derived from the Master Plan Completion of KB
Bukopin IT System
Card System
Digital
▪ Determined in IT strategy

▪ Result:
▪ Perform Quick-Win
Projects

Loan
System

Core Banking
Non-Contact
Systems
New Branch Format
To Engage Our Customer
Common area Advisory/ meeting
rooms Community Priority Lounge
(incl.
restaurant and Area
/or retail
store)

Transaction Digital Area

1st
floor
2nd
floor

Community area Transaction Common area

Interactive
decoration

Food &
Advisory/ stationary
meeting services
Digital space
area Digital

Transaction
Advisory/ meeting
space
Aiming to become a competitive bank in Indonesia and
fulfill its social responsibilities at the same time
▪ Contributing and donating to the community for education and religious support, the environment protection, disasters and Covid-19.
▪ Not only that, KB headquarters in Korea also supports overcoming the earthquake in Indonesia and supports Korean schools in Indonesia,
emergency medical supplies for Korean and Indonesian society.
▪ And And it is planning to donate 400,000 masks to prevent covid-19
■ Awards 2021

15
THANK YOU

매우 감사합니다